Transnet boss digs in heels againstfiring · "The termination letter does not make any ref er ence...

1
The copyright act of 1978 (as amended) prohibits the reproduction of this copy IN ANY FORMAT, (See Clause 4 Terms and Conditions) without prior permission of the original publisher. Publication SUNDAY TIMES EXPRESS Page 4 Date Sun 07 Oct 2018 AVE (ZAR) 77502.48 Transnet boss digs in heels againstfiring Gama defies board bid to sack him over financial irregularities By ZINGISA MVUMVU & Transnet CEO SiyabongaGamais refusing to step down from the logisticsutility, argu- ing that the company 'sboard has no authori- ty to removehim. Instead, Gama has come out strongly againstthe Transnet board's plan to fire him, giving them until the end of businesshours on Tuesdayto drop the idea. This is the latest chapter in a tit-for-tat battle between Gamaand the board follow- ing damaging findings against him over ten- der irregularities at Transnet involving bil- lionsof rands. ese In a letter sent on Friday to __ Transnet chair Popo Molefe, President Cyril Ramaphosa and public enterprises minis- ter Pravin Gordhan, Gama - through lawyers - is arguing that the board is jumping the | gun by asking him to explain | why he should not be fired when they had not responded | to his representations filed in Augustin responseto a notice of suspension. "The termination letter does not make any referenceto the letter of suspension[or] our client's response to the letter of suspen- sion referred to above.The termination letter constitutes a repudiation of the letter of sus- pension," reads the letter. Gama was responding to the Transnet board letter sent to him last week in which he was asked to provide reasons why he should not be fired. :: The Transnetboardwants Gamaremoved from the utility after several investigativere- portsfingered him over alleged irregularities which saw the cost of procuring 1,064 loco- motivesballooningfromR38.6bnto more than R49bn. The bid to remove Gama stems from an investigation by law firms Werksmans and MNSAttorneys, aswell as the National Trea- sury, of the purchaseof the locomotivesfrom General Electric, Bombardier Transport, China South Rail and China Nor th Rail. The board also wants Gama to repay about Rl5im in overpayments to Gupta- linked consultancyfirm RegimentsCapital. Siyabonga Gama But Gama is digging in his heels, saying the board has no power to remove him and only the cabinetcando so,through Gordhan, in terms of his employment contract. "Our client made it clear that should the relevant authority make a decision to sus- pend him, he will declar e a dispute in terms of his employmentcontract.The relevant au- thority is the appointing authority responsi- ble for appointing CEs of organs of stateor SOCs [state-owned companies]. " Gamaalsosaid, through his lawyers, that he intended to hold individual board mem- bers personally liable for potential legal costs as their action against him was not legally sound. "Our instruction is to demand aswe here- by do that the board withdraw the letter of termination within 48 hours after receipt of this letter, failing which our client will ap- proach a court of law on an urgent basisand ask for costsof an attorney and client scale from each board member per- | sonally as the fiscuscannot be muleted with costsrelating to a matter where the legal posi- tion is trite." Gama claims he called for the investigation into the pro- curement of the locomotives and has been co-oper ating with investigatorssince. "Our client was not in- volved with the negotiations and/or adjudication of . the 1,064 locomotivesand as such he could not have prevented an award or non-awar d of the tender," his lawyers told Molefe. Molef ehad not responded to repeated re- quests for comment at the time of going to print. Gama's lawyers also declined to speak publicly about the matter. But, speaking for himself, Gama said Molefeandtheboardwereouto.tarnishhis! "good name". "It is thereforemy view that the board has sought to wrongly characteriseme in order for them to create a negativ e,albeit an incor- rect, narrative about me, besmirching my good name. "I want to assureTransnetemployeesthat all that is being said about me goes against what they know about me and therefore cannot be correct. Many of them have called me expressing their unwavering support. Your trust in me is not misplaced. On the correct platform I shall ensure that I protect my reputation and my name with everything that I have."

Transcript of Transnet boss digs in heels againstfiring · "The termination letter does not make any ref er ence...

Page 1: Transnet boss digs in heels againstfiring · "The termination letter does not make any ref er ence to the letter of suspension [or] our client' s r esponse t o the letter of suspen-sion

The copyright act of 1978 (as amended) prohibits the reproduction of this copy IN ANY FORMAT, (See Clause 4 Terms andConditions) without prior permission of the original publisher.

Publication

SUNDAY TIMES EXPRESS

Page

4

Date

Sun 07 Oct 2018

AVE (ZAR)

77502.48

Transnet bossdigs in heelsagainstfiringGama defies boardbid to sack him overfinancial irregularitiesBy ZINGISA MVUMVU

& TransnetCEO SiyabongaGamais refusingto stepdown from the logisticsutility, argu-ing that the company 'sboardhasno authori-ty to removehim.

Instead, Gama has come out stronglyagainstthe Transnetboard's plan to fire him,giving them until the end of businesshourson Tuesdayto drop the idea.

This is the latest chapter in a tit-for-tatbattlebetween Gamaand the board follow-ing damaging findings against him over ten-der irregularities at Transnet involving bil-lionsofrands. ese

In a letter sent on Friday to __Transnet chair Popo Molefe,President Cyril Ramaphosaand public enterprises minis-ter Pravin Gordhan, Gama -through lawyers - is arguingthat the board is jumping the |gun by asking him to explain |why he should not be firedwhen they had not responded |to his representations filed inAugustin responseto a noticeofsuspension.

"The termination letter does not makeany referenceto the letter of suspension[or]our client's response to the letter of suspen-sionreferred to above.The termination letterconstitutesa repudiation of the letter of sus-pension," reads the letter.

Gama was responding to the Transnetboard letter sent to him last week in whichhe was asked to provide reasons why heshouldnot be fired. ::

TheTransnetboardwants Gamaremovedfromthe utility afterseveral investigativere-portsfingeredhim over allegedirregularitieswhich saw the costof procuring 1,064 loco-motivesballooningfromR38.6bnto morethan R49bn.

The bid to remove Gama stems from aninvestigation by law firms Werksmans andMNSAttorneys, aswell asthe NationalTrea-sury, of the purchaseofthe locomotivesfromGeneral Electric, Bombardier Transport,China South Rail and China NorthRail.

The board also wants Gama to repayabout Rl5im in overpayments to Gupta-linked consultancyfirm RegimentsCapital.

Siyabonga Gama

But Gama is digging in his heels, sayingthe board hasno power to remove him andonly the cabinetcandoso,throughGordhan,in termsofhis employmentcontract.

"Our client made it clear that should therelevant authority make a decision to sus-pend him, he will declarea dispute in termsofhis employmentcontract.The relevantau-thority is the appointing authority responsi-ble for appointing CEs of organsof stateorSOCs [state-owned companies]. "

Gamaalsosaid, through his lawyers, thathe intended to hold individual board mem-bers personally liable for potential legalcosts as their action against him was notlegally sound.

"Our instruction is to demandaswe here-by do that the board withdraw the letter oftermination within 48 hours after receipt ofthis letter, failing which our client will ap-proach a court of law on an urgent basisandask for costsof an attorney and client scale

from each boardmember per- |sonally asthe fiscuscannotbemuletedwith costsrelating toa matter where the legal posi-tion is trite."

Gama claims he called forthe investigation into the pro-curement of the locomotivesand has been co-operatingwith investigatorssince.

"Our client was not in-volved with the negotiationsand/or adjudication of . the1,064 locomotivesand assuch

he could not have prevented an award ornon-awar d of the tender," his lawyers toldMolefe.

Molefehad not responded to repeated re-quests for comment at the time of going toprint.

Gama's lawyers also declined to speakpublicly about thematter.

But, speaking for himself, Gama saidMolefeandtheboardwereoutto.tarnishhis!"good name".

"It is thereforemy view that the boardhassought to wrongly characteriseme in orderfor them to createa negative,albeit an incor-rect, narrative about me, besmirching mygoodname.

"I want to assureTransnetemployeesthatall that is being said about me goesagainstwhat they know about me and thereforecannot be correct.Many of them have calledme expressing their unwavering support.Your trust in me is not misplaced. On thecorrect platform I shall ensure that I protectmy reputation andmy namewith everythingthat I have."